DTN Early Word Opening Livestock 03/19 05:56
Livestock Futures Seem Set to Open Week With Mixed Prices
Look for the cattle complex to open on a mixed basis, a slow and cautious
combination of follow-through selling and the vaulted premium status of the
cash feedlot trade. Lean hog futures are also staged for uneven prices in the
early going with nearby issues being pressured more than deferreds.
By John Harrington
DTN Livestock Analyst
Cattle: Steady Futures: Mixed Live Equiv $149.99 +0.26*
Hogs: Stdy-$1 LR Futures: Mixed Lean Equiv $ 77.64 -0.21**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
Cash cattle buyers and sellers will slowly retake the same cash positions on
the field they left late last week. Actually, activity Monday will be pretty
much limited to the distribution of new showlists. The late-month fed offering
is likely to be steady to somewhat larger than last week. Beef processing
margins are decent at the start of the week, and we assume that slaughter could
be somewhat larger than last week, probably around 605,000 to 610,000. If
feedlot managers continue to feel confident enough to turn a blind eye toward
the discounted board, initial asking prices should be around $129 in the South
and $207 plus in the North. Live and feeder futures are likely to open on a
mixed basis with the board torn between residual selling and large country
premiums.